https://www.taxtmi.com/caselaws?id=399734 Consideration for distribution of off-the-shelf software to Indian distributors was treated as payment for a copyrighted article, not for use of copyright, because the distributors received only a non-exclusive right to market and distribute the software and had no rights over source code, modification, reproduction beyond limited backup use, or other exploitation of copyright. On that basis, the receipt was held not to be royalty under the India-Finland treaty, and domestic retrospective amendments to section 9(1)(vi) could not enlarge the treaty definition. The same reasoning applied to maintenance, support services and upgrades, which were incidental to software supply and functionality support rather than any transfer of copyright rights. Both receipts were therefore taxable as business income, and the royalty additions were deleted. en-us Wed, 07 Oct 2020 00:00:00 +0530 Sat, 17 Oct 2020 13:26:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=399734 Consideration for distribution of off-the-shelf software to Indian distributors was treated as payment for a copyrighted article, not for use of copyright, because the distributors received only a non-exclusive right to market and distribute the software and had no rights over source code, modification, reproduction beyond limited backup use, or other exploitation of copyright. On that basis, the receipt was held not to be royalty under the India-Finland treaty, and domestic retrospective amendments to section 9(1)(vi) could not enlarge the treaty definition. The same reasoning applied to maintenance, support services and upgrades, which were incidental to software supply and functionality support rather than any transfer of copyright rights. Both receipts were therefore taxable as business income, and the royalty additions were deleted. Case-Laws Income Tax Wed, 07 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=399734